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In 2017 Rick Fair was appointed CEO of Bellicum Pharmaceuticals, Inc. (NASDAQ:BLCM). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Rick Fair's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Bellicum Pharmaceuticals, Inc. has a market cap of US$80m, and is paying total annual CEO compensation of US$3.3m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$551k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$473k.
Thus we can conclude that Rick Fair receives more in total compensation than the median of a group of companies in the same market, and of similar size to Bellicum Pharmaceuticals, Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Bellicum Pharmaceuticals has changed over time.
Is Bellicum Pharmaceuticals, Inc. Growing?
On average over the last three years, Bellicum Pharmaceuticals, Inc. has shrunk earnings per share by 1.6% each year (measured with a line of best fit). It achieved revenue growth of 602% over the last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Bellicum Pharmaceuticals, Inc. Been A Good Investment?
Since shareholders would have lost about 88% over three years, some Bellicum Pharmaceuticals, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Bellicum Pharmaceuticals, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bellicum Pharmaceuticals (free visualization of insider trades).
Important note: Bellicum Pharmaceuticals may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.